Does Age-Dependent Dismissal Protection in Germany Violate European Anti-Discrimination Guidelines?

Abstract

Age-dependent regulations have been part of the German labor market regulations since long. Following the introduction of European anti-discrimination legislation, they have come under scrutiny in recent years. Nevertheless, while age discrimination is forbidden, age-dependent regulations are not unlawful in every case. Unequal treatment can be qualified under certain conditions, e.g. if labor market risks are pronounced for certain age groups. This contribution takes a look at dismissal protection law and a selection of collective agreements in Germany which are important examples of regulations favoring older workers in case of collective dismissals at the business level. It turns out that these forms of age-dependent dismissal protection are well-qualified when elevated dismissal risks and unemployment risks of older workers are considered. While longer unemployment durations for the older are well-known (and reflected in higher unemployment benefit duration eligibility in Germany), this has never been shown to date for the dismissal risk of older workers in Germany.